Sun-Times Media's efforts to replace board members stalled by Davidson Kempner

By Lisa Kerner

Charlotte, N.C., Jan. 2 - Three members of Sun-Times Media Group, Inc.'s board of directors will remain on the board until new directors are appointed, according to a company news release.

Sun-Times said the three had previously announced they would resign effective Dec. 31 as part of a board-led restructuring, but the company's recruitment of replacement directors has been hampered by Davidson Kempner Capital Management LLC's consent solicitation process.

Davidson Kempner wants to reduce the Chicago-based newspaper company's board to five directors from seven and put forth its own slate of director nominees, it was previously reported.

In addition to current independent director Robert B. Poile, Davidson Kempner is nominating:

• Jeremy L. Halbreich, former president and general manager of the Dallas Morning News;

• Robert A. Schmitz, a partner at Quest Turnaround Advisors; and

• Michael E. Katzenstein, founder and principal of CXO, LLC, a restructuring and turnaround management firm.

Davidson Kempner said it wants a reconstituted board to arrest cash burn, resolve an Internal Revenue Services claim and strategically reposition Sun-Times.

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